Human Capital is More Valuable to Economies Than Physical Assets

Human capital is more than twice as valuable to the global economy as physical capital, but business leaders often overestimate the value of tangible forms of capital and underestimate the importance of employees to their company’s performance, a study commissioned by executive search firm Korn Ferry has concluded. The report, “The trillion-dollar difference,” outlines the findings of a survey of more than 800 global business leaders that was conducted in August and September 2016, as well as of a global economic analysis that was conducted by the Centre for Economics and Business Research. The report was released on December 15, 2016. To quantify the relative value of human and physical capital, researchers developed a lifetime income calculation for measuring human capital that encompasses the ability of people to perform labor and add productive value over time. Physical capital was measured by the value of tangible means of production (such as …

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Women Entrepreneurs: A Growing Trend

The business landscape is continually changing—technological advances, corporate downsizing, restructuring, and telecommuting have reshaped the marketplace.­ Although these improvements and modifications have a great impact on our working environment, perhaps the most notable trend has been the rapid growth in the number of women-owned businesses. According to the Center for Women’s Business Research (2012), three quarters of women-owned businesses are those wherein women own a majority share, and each year, women-owned businesses generate almost $1.9 trillion in sales. Statistics from the Center for Women’s Business Research reveal impressive gains for women in the marketplace: An estimated 10.4 million companies are owned by women. Women-owned businesses account for 41% of all firms in the U.S., and employ 12.8 million workers. In the past 20 years, women-owned companies grew by 42%. This figure is two times the growth rate of all privately-held firms for that time period. The “Push” Behind the Numbers …

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